Interview Question and Answers on Inventory in Oracle EBS R12
1. What is Oracle Inventory in Oracle EBS R12, and what is its primary purpose?
Answer: Oracle Inventory is a module in Oracle EBS R12 that manages an organization's inventory of goods and materials. Its primary purpose is to track and control the movement and valuation of inventory items.
**2. How does Oracle Inventory integrate with other modules in Oracle EBS R12?
Answer: Oracle Inventory integrates with various modules, including Purchasing, Order Management, Work in Process (WIP), Bill of Materials (BOM), and General Ledger (GL), to streamline inventory operations and maintain accurate records.
**3. What are the key components of Oracle Inventory in Oracle EBS R12?
Answer: The key components include Items, Organizations, Locations, Subinventories, Inventory Transactions, Cycle Counting, Replenishment, and Inventory Reports.
**4. Can you explain the concept of Items in Oracle Inventory, and why are they important?
Answer: Items in Oracle Inventory represent individual products or materials an organization keeps in stock. They are essential for tracking inventory, specifying product details, and managing stock levels.
**5. What is the purpose of Organizations in Oracle Inventory, and how do they define inventory structures?
Answer: Organizations in Oracle Inventory represent business units or entities within an organization. They define inventory structures such as legal entities, inventory organizations, and operating units.
**6. How does Oracle Inventory handle the management of Locations, and what role do locations play in inventory operations?
Answer: Oracle Inventory allows organizations to define physical and logical Locations. Physical locations represent physical storage areas, while logical locations represent virtual or functional locations within an organization. Locations are used to store and organize inventory items.
**7. What are Subinventories in Oracle Inventory, and how are they used to categorize inventory?
Answer: Subinventories in Oracle Inventory are subdivisions within an inventory organization used to categorize inventory items based on attributes like location, status, or usage. They help control and track inventory more effectively.
**8. How does Oracle Inventory handle Inventory Transactions, and what are the common types of inventory transactions?
Answer: Oracle Inventory records inventory transactions that involve the movement of items within or between subinventories. Common types of inventory transactions include issue, transfer, receipt, and return transactions.
**9. What is Cycle Counting in Oracle Inventory, and how does it differ from traditional physical inventory counting?
Answer: Cycle Counting in Oracle Inventory is a continuous inventory counting method that involves counting a subset of inventory items regularly. It differs from traditional physical inventory counting, which typically occurs periodically and counts all items at once.
**10. How does Oracle Inventory support Replenishment, and what methods are available for managing inventory levels?
Answer: Oracle Inventory supports inventory replenishment by offering various methods, including Min-Max Planning, Reorder Point Planning, and Kanban Replenishment. These methods help maintain optimal inventory levels.
**11. What is the role of ABC Analysis in Oracle Inventory, and how does it help in inventory management?
Answer: ABC Analysis in Oracle Inventory categorizes items into classes (A, B, C) based on their value or importance. It helps prioritize items for inventory management efforts, such as cycle counting and replenishment.
**12. How does Oracle Inventory handle Serial and Lot Control, and what are the advantages of using these controls?
Answer: Oracle Inventory allows organizations to implement Serial and Lot Control to track individual items by serial numbers or lot numbers. These controls provide traceability, quality control, and recall management benefits.
**13. What is the purpose of Material Status Control in Oracle Inventory, and how does it manage the disposition of inventory items?
Answer: Material Status Control in Oracle Inventory restricts or controls the disposition of inventory items based on their status. It ensures that items are used or distributed according to defined rules and quality standards.
**14. How does Oracle Inventory support the management of Reservations, and what is their role in inventory allocation?
Answer: Oracle Inventory allows organizations to create Reservations to allocate inventory items for specific orders or purposes. Reservations ensure that items are set aside for planned use and prevent overallocation.
**15. What is the significance of Pick Wave in Oracle Inventory, and how does it optimize the picking process in warehouses?
Answer: Pick Wave in Oracle Inventory is a feature used in warehouses to optimize the picking of items for outbound shipments. It consolidates multiple orders into a single picking wave to minimize travel time and increase efficiency.
**16. How does Oracle Inventory handle the management of Material Transactions, and what types of transactions are typically recorded?
Answer: Oracle Inventory records Material Transactions to track the movement of inventory items. Common types of transactions include issue, transfer, receipt, scrap, and return transactions.
**17. What is the role of Item Categories in Oracle Inventory, and how are they used to classify items?
Answer: Item Categories in Oracle Inventory are used to classify items into predefined categories based on attributes such as usage, size, or type. They assist in organizing and managing inventory items.
**18. How does Oracle Inventory handle the management of Work in Process (WIP) Inventory, and what is its role in manufacturing operations?
Answer: Oracle Inventory integrates with the Work in Process (WIP) module to track and manage inventory items in the manufacturing process. It records material issues and returns related to production.
**19. What is the purpose of Valuation Methods in Oracle Inventory, and how do they determine the cost of inventory items?
Answer: Valuation Methods in Oracle Inventory determine how the cost of inventory items is calculated. They include methods such as FIFO, LIFO, Weighted Average, and Standard Cost.
**20. How does Oracle Inventory support the management of Shipping Execution, and what tools are available for order fulfillment?
Answer: Oracle Inventory integrates with the Shipping Execution module to streamline the order fulfillment process. Tools available include Pick Release, Packing, and Shipping Confirmations.
**21. What is the role of Reorder Point Planning in Oracle Inventory, and how does it help in managing inventory levels?
Answer: Reorder Point Planning in Oracle Inventory helps organizations maintain inventory levels by specifying a reorder point and reorder quantity for items. When inventory falls below the reorder point, a replenishment order is triggered.
**22. How does Oracle Inventory handle the management of Material Status Control, and what are its benefits in controlling inventory items?
Answer: Material Status Control in Oracle Inventory allows organizations to restrict the usage or disposition of inventory items based on their status. It helps maintain product quality, compliance, and traceability.
**23. What is the significance of Min-Max Planning in Oracle Inventory, and how does it determine when to reorder items?
Answer: Min-Max Planning in Oracle Inventory sets minimum and maximum inventory levels for items. When the inventory falls below the minimum level, a reorder is triggered to bring it back to the maximum level.
**24. How does Oracle Inventory support the management of Material Transfers, and what is the process for transferring inventory between locations?
Answer: Oracle Inventory allows organizations to perform Material Transfers to move inventory between locations or subinventories. The process typically involves creating a transfer order, picking the items, and confirming the transfer.
**25. What is the role of FIFO (First-In, First-Out) in Oracle Inventory, and how does it influence inventory costing?
Answer: FIFO (First-In, First-Out) is a valuation method in Oracle Inventory where the oldest inventory items are assumed to be the first ones used or sold. It influences inventory costing by allocating the cost of the oldest items to transactions first.
**26. How does Oracle Inventory handle the management of Supplier Ship and Debit in the context of returns and adjustments?
Answer: Oracle Inventory allows organizations to process Supplier Ship and Debit transactions for returns, adjustments, or price corrections with suppliers. It helps in resolving discrepancies and updating inventory records.
**27. What is the role of Subinventory Transfers in Oracle Inventory, and how are they used to move inventory within an organization?
Answer: Subinventory Transfers in Oracle Inventory are used to move inventory items between subinventories within the same organization. They facilitate internal stock transfers and inventory adjustments.
**28. How does Oracle Inventory handle the management of Physical Inventory Counts, and what is the purpose of periodic physical counts?
Answer: Oracle Inventory supports Physical Inventory Counts, where organizations perform a periodic physical verification of inventory quantities on hand to reconcile them with system records. It helps identify discrepancies and ensure inventory accuracy.
**29. What is the significance of Bill of Materials (BOM) in Oracle Inventory, and how does it relate to inventory management?
Answer: Bill of Materials (BOM) in Oracle Inventory defines the components and materials required to assemble finished products. It relates to inventory management by specifying the items needed for production.
**30. How does Oracle Inventory handle the management of Cycle Counting, and what are its benefits over traditional physical inventory counting?
Answer: Cycle Counting in Oracle Inventory involves regularly counting a subset of inventory items. Its benefits over traditional physical inventory counting include increased accuracy, reduced disruption, and continuous monitoring of inventory.
**31. What is the role of Cross-Organization Shipping in Oracle Inventory, and how does it support shipping across multiple organizations?
Answer: Cross-Organization Shipping in Oracle Inventory allows organizations to ship items across multiple legal entities or organizations within the same instance. It streamlines the shipping process in complex environments.
**32. How does Oracle Inventory handle the management of Lot Control, and what industries typically use lot tracking?
Answer: Oracle Inventory supports Lot Control, which involves tracking inventory items by lot numbers. Industries such as pharmaceuticals, food, and electronics often use lot tracking for quality control and traceability.
**33. What is the purpose of Master Items in Oracle Inventory, and how do they simplify item management?
Answer: Master Items in Oracle Inventory are template items that simplify item creation and management by providing default values for attributes. They streamline the item setup process.
**34. How does Oracle Inventory support the management of Material Workbench, and what information is available in the Workbench?
Answer: Oracle Inventory provides the Material Workbench for managing material requirements and planning. The Workbench displays information about demand, supply, and recommended actions for items.
**35. What is the significance of Material Status Control in Oracle Inventory, and how does it manage the disposition of inventory items?
Answer: Material Status Control in Oracle Inventory restricts or controls the disposition of inventory items based on their status. It ensures that items are used or distributed according to defined rules and quality standards.
**36. How does Oracle Inventory handle the management of Serial Control, and what are the benefits of serial tracking?
Answer: Oracle Inventory supports Serial Control, which involves tracking individual items by serial numbers. Serial tracking provides traceability, warranty management, and accurate record-keeping.
**37. What is the role of Mobile Inventory in Oracle Inventory, and how does it enhance inventory management in warehouse environments?
Answer: Mobile Inventory in Oracle Inventory provides mobile applications for inventory management tasks, such as picking, receiving, and cycle counting. It enhances efficiency and accuracy in warehouse operations.
**38. How does Oracle Inventory handle the management of Transaction Types, and what is their significance in recording inventory transactions?
Answer: Oracle Inventory uses Transaction Types to categorize and control inventory transactions. They specify the purpose and nature of each transaction, ensuring that the correct accounting and processing rules are applied.
**39. What is the purpose of Physical Inventory Reconciliation in Oracle Inventory, and how is it performed?
Answer: Physical Inventory Reconciliation in Oracle Inventory involves comparing physical inventory counts with system records to identify discrepancies. It is performed to ensure that inventory records are accurate.
**40. How does Oracle Inventory support the management of FIFO (First-In, First-Out) costing, and what industries commonly use this costing method?
Answer: Oracle Inventory allows organizations to use FIFO costing, where the oldest inventory items are assumed to be the first ones used or sold. Industries such as food and beverage and automotive often use FIFO costing for inventory valuation.
**41. What is the role of Forecasting in Oracle Inventory, and how does it assist in inventory planning?
Answer: Forecasting in Oracle Inventory involves predicting future demand for items based on historical data and other factors. It assists in inventory planning by helping organizations maintain optimal stock levels.
**42. How does Oracle Inventory handle the management of Item Status, and what is its purpose in controlling inventory items?
Answer: Oracle Inventory allows organizations to assign Item Status to inventory items. Item Status controls the availability and disposition of items based on their condition, quality, or other attributes.
**43. What is the significance of ATP (Available to Promise) in Oracle Inventory, and how does it support order fulfillment?
Answer: ATP (Available to Promise) in Oracle Inventory calculates the availability of inventory to fulfill customer orders. It supports order fulfillment by ensuring that there is sufficient stock to meet customer demand.
**44. How does Oracle Inventory handle the management of Subinventory Reservations, and what is their role in inventory allocation?
Answer: Oracle Inventory allows organizations to create Subinventory Reservations to allocate inventory items for specific purposes, projects, or orders. Reservations ensure that items are set aside and not consumed by other processes.
**45. What is the role of Costing Methods in Oracle Inventory, and how do they impact inventory valuation?
Answer: Costing Methods in Oracle Inventory determine how the cost of inventory items is calculated. They impact inventory valuation by influencing the cost assigned to items in transactions and on the balance sheet.
**46. How does Oracle Inventory support the management of Inventory Adjustments, and what are the reasons for adjusting inventory?
Answer: Oracle Inventory allows organizations to perform Inventory Adjustments to correct discrepancies between physical counts and system records. Common reasons for adjustments include errors, damaged items, and quality control issues.
**47. What is the purpose of Kitting in Oracle Inventory, and how does it assist in managing bundled or assembled products?
Answer: Kitting in Oracle Inventory involves creating kits or assemblies by bundling multiple inventory items together. It assists in managing products that are sold as sets or require assembly.
**48. How does Oracle Inventory handle the management of Inventory Aging, and what is the significance of tracking item age?
Answer: Oracle Inventory allows organizations to track Inventory Aging by monitoring the age of inventory items based on their receipt or manufacturing date. It is significant for managing shelf life, quality control, and obsolescence.
**49. What is the role of Inventory Planning Parameters in Oracle Inventory, and how are they used to optimize inventory management?
Answer: Inventory Planning Parameters in Oracle Inventory are settings that define how inventory planning is performed. They include parameters like safety stock levels, order multiples, and lead times, which are used to optimize inventory management.
**50. How does Oracle Inventory handle the management of Material Safety Data Sheets (MSDS), and what industries commonly require MSDS for inventory items?
Answer: Oracle Inventory allows organizations to associate Material Safety Data Sheets (MSDS) with hazardous or regulated inventory items. Industries such as chemicals, pharmaceuticals, and manufacturing often require MSDS for compliance and safety purposes.
Comments
Post a Comment